China, Belt & Road: Eliminate Poverty, Not “Debt-Trap”

April 21, 2019

President Xi Jinping Hands-on Drive to Eliminate Poverty

As part of his government’s plan to entirely eliminate poverty from China by the end of 2020, President Xi Jinping carried out “an inspection tour to southwest China’s Chongqing Municipality” earlier this week, Xinhua reported, in which he pledged to address the issue like “a hammer driving a nail.” Xi first flew to Chongqing, China’s fourth largest city, and then spent another three hours, first by train and then by road, to reach Huaxi Village, where 302 people living in 85 households are registered as living below the poverty line.

Xinhua added: “Huaxi Village is a typical case of China’s impoverished regions. The basic needs for food and clothing have been met, but more efforts are needed for compulsory education, basic medical care and safe housing.”

It is to be noted that China’s criteria for poverty reduction are not strictly monetary, but include key physical-economic parameters such as education, health, and housing. As of 2018 there were still 16.6 million rural residents living in poverty in China. The government plans to lift about 10 million of those out of poverty during 2019. Xinhua then quoted Xi during his tour:

“The battle against poverty has entered a decisive and critical stage. We must press ahead with our full strength and strongest resolve and never stop until we secure a complete victory. After visiting the village, I feel reassured. We may have about 6 million impoverished people and 60 impoverished counties left at the beginning of 2020. If we make sure this year’s work is well-implemented and push ahead next year, we will eliminate poverty. We are confident about accomplishing the mission.

“Less than two years are left before fulfilling the objective of poverty alleviation. This year is particularly crucial,” Xi said at a symposium held Tuesday afternoon in Chongqing. “The most important thing at this stage is to prevent laxity and backsliding.” Xinhua’s account emphasized the top-down involvement of government officials in achieving this national goal. “Throughout the years, more than three million officials from governments above the county level, state-owned enterprises and public institutions have stayed in impoverished villages to offer assistance.

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FOCAC Summit 2018 (courtesy africa.cgtn.com)
I am posting the following article even though it is from last year, because the author accurately disproves the “debt-trap” propaganda being used by western institutions against China-Africa cooperation.

“2018 FOCAC: Africa in the New Reality of Reduced Chinese Lending”

August 31, 2018

W. Gyude Moore is a visiting fellow at the Center for Global Development. He previously served as Liberia’s Minister of Public Works with oversight over the construction and maintenance of public infrastructure from December 2014 to January 2018.

Debt Trap or Much-Needed Investment?

The debt trap diplomacy case, however, has never been convincingly argued and its application in Africa is, at best, tenuous. The reality of Africa’s debt to China is not particularly remarkable when taken against the sources of continent’s external debt stock (see figure below). A number of African countries’ (Djibouti, Kenya, and Angola) debt obligations to China are alarming—as they would be regardless of creditor. China’s $115 billion credit to Africa between 2000 and 2016 is still less than 2 percent of the total $6.9 trillion of low and middle income countries’ debt stock. Recent studies have shown that China is not a driver of debt distress in Africa—yet. The language of debt trap diplomacy resonates more in Western countries, especially the United States, and is rooted in anxiety about China’s rise as a global power rather than in the reality of Africa.

A column chart of external government debt for Sub-Saharan Africa by official, private, and Chinese creditors

Continue reading entire article

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China’s Belt And Road Forum to Gather 37 World Leaders, and Representatives from Five Continents

There will be no less than 37 heads of state and government attending China’s Second Belt and Road forum in Beijing next week, Chinese Foreign Minister Wang Yi said on Friday. In addition there will be 360 attendees at ministerial level, 100 leaders of international organizations and 5,000 participants. 4,000 reporters will also be attending the Forum, whose theme is “Belt and Road Cooperation, Shaping a Brighter Shared Future.”

“The second Belt and Road Forum will be held in Beijing on April 25-27. It will become China’s largest international event this year. Thirty-seven leaders of state and government will participate in the forum,” Wang told a press conference.  This will include the leaders of Austria, Egypt, Hungary, Italy, Russia, the United Arab Emirates and others. “Senior representatives” of France, Germany, Britain, Spain, Japan, the Republic of Korea and the European Union will also participate; other diplomatic representatives of the United States and North Korea will also be there. International Monetary Fund Managing Director, Christine Lagarde, and Antonio Guterres, the UN secretary- general, are also expected to participate, according to Wang.

This is the highest level event for cooperation on the Belt and Road Initiative, Minister Wang said. He said this year’s event will be characterized by a clear direction, a solid foundation, a warm response from participants, a program of practical cooperation and clearly defined results. A Leaders’ Round-Table Summit will issue a Joint Communique to show the political consensus of the leaders in building the Belt and Road.

The long-term effects of the Initiative will be to strengthen multilateralism, to enrich the principles of cooperation, to build a network of partnership and to build a strong support system for continued development. Wang Yi also underlined the connection between the BRI and China’s new phase of “opening up.” The new phase of  China’s “reform and opening up” will “bring more opportunities for promoting the ‘Belt and Road Initiative’ and the common development of all countries,” he said. “I believe that the forum will inject stronger impetus into the world economy, open even broader horizon for the development of the countries, and contribute to the building of a community with a shared future for humanity,” Wang continued.

China’s Belt & Road New Paradigm for Development: United States Should Join

April 18, 2019

Belt and Road Creates New Asian Paradigm for Global Economic Integration and Inclusiveness

That is the headline on an April 15 {Global Times} op-ed by Toumert Al, the director of Education, International Bachelor Program at the International School under the China Foreign Affairs University. The article provides a tour d’horizon of BRI achievements to date in infrastructure projects on various continents.

“In South Asia, the Belt and Road Initiative is seen as a main driver for infrastructure construction in a region that must bridge the ever-growing gap between its economic potential and the realities of its insufficient infrastructure. According to the World Bank, South Asia requires about 2 trillion dollars of investment in infrastructure construction from 2011 to 2020 if the region wants to be part of the new economic order shaping the future.” The article then discusses a couple of key projects, such as the Padma bridge in Bangladesh and Gwadar port in Pakistan.

Nigeria’s Mambilla Hydro-Electric Dam-3,000 megawatts (courtesy nigerianmuse.com)

“True to its global status and inclusive nature, the BRI is not merely a regional initiative. Africa can be considered a major beneficiary of  China’s economic drive to support the continent’s development and to help its infrastructure and economy achieve targeted growth plans. The year 2018 could be considered the turning point for the BRI in Africa as the signing of the MOU of cooperation between China and 37 African countries and the African Union raised the initiative to a new level. Infrastructure financing provided by China to Africa averaged $11.5 billion between 2012 and 2016.” Examples cited include the $5.8 billion Mambila Hydropower Plant in Nigeria, the Addis Ababa-Djibouti railway, the $11 billion port in Bagamoyo, Tanzania now under construction, and the Nairobi-Mombasa railway project. “Another project that is moving forward and may have the same implications as CPEC (China Pakistan Economic Corridor) has in South Asia is the Suez Canal corridor in Egypt,” the Toumert wrote. In short, the BRI “is a truly new paradigm in international cooperation.”

The Belt and Road Initiative Keeps Growing

China is now engaged in heavy organizing in the countdown to the April 26-27 Second Belt and Road Forum in Beijing, which will bring together representatives of over 100 countries and 29 international organizations. Just how powerful a draw the BRI is to nations across the planet, was shown earlier this week when the tiny Caribbean nation of Jamaica announced that they had signed an MOU with China on the BRI –notwithstanding the withering pressure that Washington and London have brought to bear. A similar, if strategically weightier example of this process was Italy’s signing an MOU with visiting Chinese President Xi Jinping last month.

Foreign Ministry spokesman Lu Kang yesterday discussed China’s approach to the upcoming Forum: “While the BRI was proposed by China, it has grown into an international public good. The success of the first BRF together with the bumper practical outcomes speaks volumes. The fact that more countries and international organizations are taking an active part in the second forum is further proof to its success.”

Asked about media accounts that India would not be sending a delegation–as they hadn’t to the First Belt and Road Forum–because they view the BRI’s China Pakistan Economic Corridor (CPEC) as infringing on Indian sovereignty, Lu responded:

“I would like to reiterate that the BRI is an open and inclusive initiative for economic cooperation. It never concerns territorial disputes. In pursuing BRI cooperation, China and partner countries are committed to equality, openness and transparency, to business operations centered around enterprises and to market rules and international norms. For those with inaccurate judgment on the BRI based on misunderstandings due to lack of knowledge of the real situation, I would like to reassure them that China is sincerely and resolutely committed to the principle of consultation and cooperation for shared benefit, equality and mutual benefit. Since its initiation, the Belt and Road cooperation has been inclusive and open to all countries that are interested in joining and working for win-win cooperation. It excludes no one. If the relevant country would like to take some time to see, we can wait.”

Meanwhile, Xinhua interviewed Cambodia’s Information Minister Khieu Kanharith who said that “the BRI forum will also further promote cooperation between China and ASEAN and between China and Cambodia…. For Cambodia, with Chinese assistance, we can build mega-infrastructure projects, and those projects are crucial to boosting economic growth and making communication easier and faster…. Our first priority is to boost economic growth and to make everybody have a fair share of the economic growth, The BRI can help us through sup-porting infrastructure projects and human resources development.”

He continued: “China has assisted us on equal footing, meaning that although China is a big country and Cambodia is a small country, China always treats us equally. With Chinese support, Cambodia has gained confidence in ourselves and our people are proud and confident in rebuilding the country.”

Chinese Insist the U.S. Should Join the Belt and Road

Asian Infrastructure Investment Bank President Jin Liqun told last weekend’s Harvard China Forum that the “infrastructure bottlenecks are the sewage problems of development. I would say that that’s also a problem for the United States”–a statement Americans can agree with. He presented the Belt and Road Initiative as “a platform for all participating countries to work together, including on connectivity,” which he called a matter not only of regional development, but also of “world peace and prosperity.”

When a discussion arose on how China had gone from being a debtor nation dependent on foreign development assistance, to one of the largest contributors to the World Bank’s International Development Assistance facility today, Jin pointedly commented that how much money a country has is not the issue.

“Accumulated wealth cannot buy you respect unless you help do good things for the rest of the world. So China has been trying to invest and help other countries through its own experience,” Jin stated.

At a Center for China and Globalization conference in Beijing over the same weekend, Jin Xin, director of the China Center for Contemporary World Studies of the Communist Party’s International Liaison Department, took on the arguments of former U.S. Ambassador Terry Miller (from the G.W. Bush days), who asserted the U.S. had no interest in participating in the Belt and Road Initiative, which is viewed as “a Chinese show” that “doesn’t have much to do with us.” Jin Xin countered that the U.S. should work with China in third-country markets under the BRI. If it decides not to do so, the U.S. will again find itself “excluded,” just as it excluded itself from the AIIB, in which more than 90 countries are now members, Jin said.

Nigeria to Expand Manufacturing; UN Praises China’s Belt and Road

APRIL 11, 2019

Nigeria plans special economic zones to double manufacturing by 2025

(courtesy thisdaylive.com)

Nigeria is Africa’s biggest economy but it lacks a strong manufacturing base, which contributes less than 10 percent to its total gross domestic product (GDP). The country has maintained a strong currency to ensure it can keep imports pouring in, with a growing proportion coming from China.

 

“Project MINE’s (Made in Nigeria for Export) strategic objectives are to increase (the) manufacturing sector’s contribution to GDP to 20 percent … and generate over $30 billion annually by 2025,” the ministry of industry, trade and investment said in a statement.

The government has set up Nigeria SEZ Investment Company, which will finance industrial parks in special economic zones in the commercial capital of Lagos, southeastern state of Abia and northern state of Katsina.

The government is currently raising capital of $250 million for Nigeria SEZ Investment Company. It plans to double its equity to $500 million over four years, the ministry said.

The West African country’s manufacturing and agricultural sectors have been neglected since the 1970s oil boom, when Nigeria began making easy money from crude oil sales.

Nigeria, where the vast majority of the population lives on less than $2 a day, recently emerged from a recession but growth is fragile and the government is trying to diversify its revenue away from its reliance on oil.

President Muhammadu Buhari, who is due to start a second four-year term next month, has pledged to revive the economy and is focused on building roads and expanding the railway network to lower production costs…

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UN Africa Official Vera Songwe Calls BRI ‘Probably One of the Biggest Growth and Development Initiatives in the World’

In an interview with the Xinhua that appeared on April 10, Vera Songwe, executive secretary of the UN Economic Commission for Africa (UNECA), hailed the role that the China-proposed Belt and Road Initiative (BRI) would play in addressing Africa’s problems in infrastructure and job creation. She told Xinhua that the BRI will positively affect hundreds of millions of people in different countries, while it helps Africa develop infrastructure connectivity of varied types and creates job opportunities that are pressing issues on the continent.

“This (BRI) is probably one of the biggest growth and development initiatives that we have in the world,” the UN official said, adding that the BRI is essential to the continent. She believes that the initiative, in which many African countries “infrastructure today is one of the necessary requirements for Africa’s growth,” Xinhua reported.

African Union Affirms High Speed Rail For Africa Moving Forward

FILE - A train conductor walks inside a carriage as passengers ride inside a Nairobi Commuter Rail Service train from the Mutindwa station in Nairobi, Kenya, Nov. 12, 2018.
FILE – A train conductor walks inside a carriage as passengers ride inside a Nairobi Commuter Rail Service train from the Mutindwa station in Nairobi, Kenya, Nov. 12, 2018 

“Plans are on track for a high-speed rail network connecting the continent’s borders by 2063, the African Union’s Development Agency says. The ambitious multi-billion-dollar project aims to ease the movement of goods and people across African borders, but the AU warns that corruption could derail that goal.Road, rail, and air traffic connections are so poor between some African countries that it is better to transit through Europe than to travel directly between neighbors.

Intra-African trade is less than 15% of total trade, says Adama Deen, the head of infrastructure at the AU’s Development Agency.

“You cannot have integration without connectivity, whether it is road or rail connectivity, especially when we are talking about the Africa Continental Free Trade Area, where you need a single market and connectivity to move goods, persons within the market,” Deen said

READ: African Union High Speed Rail Network On Track

 

Is There A Plan For A Venezuela Type Regime Change for Nigeria?

April 11, 2019

I cannot verify all the information in the article below, nor do I think President Buhari will be removed from office and replaced by Atiku Abubakar. However, the machinations presented in this article are plausible. Although, President Trump has spoken out against regime change, his administration, led by National Security Adviser, John Bolton, and Secretary of State, Mike Pompeo, is in fact attempting to do just that in Venezuela. There, they are endeavoring to replace the current President of Venezuela by installing a member of the National Assembly as head of state, who was never elected as President. Some people in and around the Trump administration are trying to use this precedent in Venezuela to establish a new precedent for regime change.  If the cited article below is true, it appears that there are unscrupulous people,  who are being handsomely paid by the defeated, but wealthy Atiku, to make him President of Nigeria.

Atiku Abubakar-left. President Buhari-right. (courtesy nigerianpilot.com)

The idea of removing President Buhari from office-Venezuelan style, would not only illegally overturn the will of the Nigerian people, but it would be a catastrophe for all of Africa. Africa, especially North Africa, is still suffering horribly from the 2011 regime change and assassination of Libyan President, Muammar Gaddafi. Contrary to the misguided apologists of the Obama administration, there is no escaping the truth; Samantha Powers, Susan Rice, Hillary Clinton, and President Obama are responsible for the death and destruction of North Africa by their reckless action in overthrowing President Gaddafi and then killing him. Following the regime change collapse of Libya, thousands of Tuaregs, along with various extremists, drove out of Libya in their pick-up trucks filled with modern weapons and munitions. As a result, following the collapse of Libya, Mali’s sovereignty was undermined, the nation destabilized, and remains so today!

Nigeria is already familiar with the effects of western inspired regime change. Boko Haram’s growth and sophistication in lethality was also caused by the influx of new terrorist actors streaming across the desert after President Gaddafi was eliminated.  Were those lunatics in the cited article ever to succeed in their fantasy to remove President Buhari, civil war accompanied by an exodus of millions of Nigerians would overwhelm West Africa especially, drawing the continent into new and deadly regional conflicts and massive internal displacement of people.

For the sake of Africa and the world, let’s put end to regime change, now!

Excerpts:

“Enlisting the assistance of two high-powered Washington, D.C. lawyers, a Nigerian presidential candidate is looking for help in his legal challenge after his election loss. Atiku Abubakar, former vice president of Nigeria, lost in the country’s February presidential election to incumbent President Muhammadu Buhari. However, Abubakar swiftly filed a legal suit challenging the election results due to allegations of voting irregularities and violence.

“Abubakar has ties to those in Trump’s orbit, having hired political consultants like Riva Levinson, who worked with Paul Manafort, and Brian Ballard, a major Trump fundraiser. Like many other foreign leaders looking to bolster their standing with Trump, Abubakar stayed at the Trump International Hotel in Washington D.C”

“Abubakar himself has a rocky legal history. A Senate subcommittee report on foreign corruption cited Abubakar as a case study regarding his transfer of millions of dollars into the U.S. through shell companies. He was never prosecuted. In 2009, the FBI alleged that Abubakar demanded bribes from former Rep. William Jefferson (D-La.), who was convicted of corruption charges. At one point, Jefferson stored $90,000 in cash for Abubakar in his freezer.”

READ: Failed Nigerian Presidential Candidate Lobbying US to Recognize Him as Authentic President

China’s Belt & Road Redefining Globalization & International Relations for Belt-Road Forum

April 10, 2019

Preparations for the Second Belt and Road Forum

On March 29, Yang Jiechi, member of the Political Bureau of the Central Committee of the Communist Party of China and director of the Office of the Central Commission for Foreign Affairs, spoke at length with the media about preparations for the late April Second Belt and Road Forum for International Cooperation in Beijing.

President Xi Jinping addressing 1st Belt Road Forum on May 15, 2017. (image credit: Reuters/Nicloas Asfouri)

“Since its inception, the BRI has received strong endorsement and warm support of the international community. So far, a total of 124 countries and 29 international organizations have signed BRI cooperation documents with China. Most recently, during President Xi’s visit to Italy, the two countries signed an MOU on promoting BRI cooperation, giving a new impetus to this process. Meanwhile, the BRI vision has been included in documents of major international institutions including the United Nations, the G20, the Asia-Pacific Economic Cooperation and the Shanghai Cooperation Organization. Indeed, the BRI has proved a popular and worthy cause that goes along with the trend of our times and responds to the shared aspiration of countries for development through mutually beneficial cooperation. Looking back at this pursuit over the last few years, I would draw your attention to the positive role the BRI has played in the following three ways…

“The BRI has created new impetus and opportunities for global growth.

“Since the outbreak of the international financial crisis in 2008, to create both new growth drivers and a new cycle of global growth has become a common task for the international community. The BRI aims to address the fundamental issue of promoting development by enhancing all-round connectivity. It has helped countries involved to remove development bottlenecks and implement the UN 2030 Agenda for Sustainable Development. This initiative has thus become an important way for boosting global growth.

“The latest studies by the World Bank and other international institutions suggest that the BRI cooperation will cut the costs of global trade by 1.1 to 2.2% and those of trade along the China-Central Asia-West Asia Economic Corridor by 10.2%. What is more, it will contribute at least 0.1% of global growth in 2019….

“As President Xi Jinping pointed out, the BRI aims to replace estrangement with exchanges between different civilizations, replace clashes with mutual learning and replace a sense of superiority with coexistence; and it aims to boost mutual understanding, mutual respect and mutual trust among different countries. So the BRI is a sure path toward peace and cooperation for win-win outcomes.

“The vision of building a new type of international relations and a community with a shared future for mankind is an important component of Xi Jinping Thought on Diplomacy. The BRI champions mutual respect, consultation on an equal footing, openness and inclusiveness, and mutual benefit. It is an approach to global governance featuring consultation and cooperation for shared benefits. And it aims to promote connectivity the world over. These are all important dimensions of the vision of a community with a shared future for mankind and a new type of international relations….

“The BRF is the highest-level platform for Belt and Road cooperation where all parties concerned meet to build consensus and adopt plans for future cooperation. We have set up a BRF Advisory Council consisting of leading international figures to provide advice on the growth of the Forum. In addition, China and other participating countries have in recent years set up platforms for multilateral cooperation on port, shipping, finance, taxation, energy, culture, think tank, the media and other areas and launched initiatives on a green Silk Road and a clean Silk Road….

“The opportunities come with the BRI’s growing international influence, moral appeal and cooperation potential. Against the backdrop of mounting protectionism and unilateralism in the world, the BRI principle of consultation and cooperation for shared benefits has gained wide recognition. Support for the BRI is the mainstream view of the international community, and the opportunities created by BRI cooperation are widely appreciated in the global community….

“The opportunities come with the accelerated industrialization of a vast number of developing countries, a process which generates new demands in infrastructure connectivity and industrial investment, and promises huge potential for international cooperation…

“We have noticed that some people have expressed different views about the BRI, claiming that the Initiative is China’s geopolitical tool and could cause some countries to fall into a debt trap. Such views are less than objective or balanced. They are simply a misunderstanding, misrepresentation and even biased view of the BRI….

“China and other 27 countries have jointly adopted the Guiding Principles on Financing the Development of the Belt and Road, which highlights the need to ensure debt sustainability in project financing. In case our cooperation partners face difficulties in servicing debts, China will properly address this issue through friendly consultation, and will never press them for debt payment. As a matter of fact, no country has got trapped in a debt crisis since its participation in the BRI. Quite on the contrary, it is through participating in BRI cooperation that many countries have got out of the trap of no development….

“The theme of this year’s BRF is: ‘Belt and Road Cooperation: Shaping a Brighter Shared Future,’ and the Forum events include the opening ceremony, a leaders’ round-table, a high-level meeting, thematic forums, a CEO conference and other side events. “Representatives from over 100 countries, including about 40 leaders of foreign governments, have confirmed their attendance. As the host country, we will, together with other Forum parties, take stock of what has been achieved and draw a blueprint for future cooperation to further enrich BRI cooperation….

“BRI cooperation is not a talk shop, but an action-oriented initiative that delivers real outcomes. The second BRF is expected to produce a full range of outcomes, including both governmental cooperation agreements and initiatives, and concrete cooperation projects involving participation of the business sector. All these will be included in a list of deliverables and be released in due course. We are confident that the second BRF will produce even greater numbers of cooperation outcomes that are of still higher quality.”

Finally, US Returning to the Moon and on to Mars: Joins China

Finally, the USA is planning on returning to space in a big way. If President Trump implements his just announced space program he will be reigniting America’s space legacy, initially led by President John Kennedy. Returning to the Moon, which President Obama foolishly dismissed by saying, “been there-done that,” is vital to our culture and economy. Exploration of our solar system and galaxy will stimulate the imagination of mankind, and return hefty economic benefits through discovering new scientific principles. Not having returned to the Moon for almost half a century was a gigantic error in American policy. Establishing a base on the Moon is an essential stepping stone to landing on Mars, the Earth’s closet neighboring planet. Over recent years, China has taken the lead in space exploration, and now, if the US is wise, we can collaborate with China in discovering new wonders about our living Universe.

August 1,. 1971) — Astronaut James B. Irwin, lunar module pilot, gives a military salute while standing beside the deployed United States flag during the Apollo 15 lunar surface extravehicular activity (EVA) at the Hadley-Apennine landing site. (courtesy of nbcnews.com)

President Donald Trump:  “This time, we will not only plant our flag and leave our footprint, we will establish a foundation for an eventual mission to Mars, and perhaps someday, to many worlds beyond.”

Highlights of President Trump’s Moon initiative:

*”The United States will seek to land on the Moon’s South Pole by 2024, establish a sustainable human presence on the Moon by 2028 (less than a decade from now0], and chart a future path for Mars exploration.

*”NASA’s lunar presence will focus on science, resource management, and risk reduction for future missions to Mars.”

*”NASA will create a Moon-to-Mars Mission Directorate and make all necessary efforts to achieve Exploration Mission-1, a mission around the Moon without a crew.

*”Exploration Mission-1 will take place no later than 2020 (next year) and a crewed mission around the Moon, Exploration Mission-2, will take place no later than 2022 (3 years from now).

*”NASA will unleash American industry, including through public-private partnerships, to enhance innovation and the sustainability of its space activities.

*”The United States will engage with international partners to enable a sustainable lunar exploration and development program.

*”An American has not walked on the Moon in 47 years [no human being, for that matter], but President Trump is working to change that.

*”To achieve this goal, President Trump is taking action to ensure that American astronauts get to their destination quickly and sustainably.”

*”These recommendations follow President Trump’s bold call for America to go back to the Moon and establish a foundation for an eventual mission to Mars.

*”The President’s Space Policy calls for NASA to lead an innovative space program with commercial and international partners.

*”Americans will return to the Moon for long-term exploration, followed by missions to Mars and beyond.”

Trump Administration Wrong Not Sending High Level Officials to Belt and Road Forum

President Trump did not attend the first Belt and road Forum-(BRF) in May of 2017, only sending a sub ministerial delegation. According to the US State d\Department, no US delegation will be attending this month’s second BRF. If true, this would represent a serious error by the Trump administration in its future relations with China. Beyond China, the decision not to participate in this historic conference will undermine US commitment to collaborate with more than half the world’s population that has joined China’s Belt and Road Initiative (BRI). Thus far, the only G-7 nation that has the wisdom to join the BRI is Italy. A minimum of 40 heads of state will be attending the second BRF. For the US to abstain, from this conference on the Belt and Road, which has already transformed the planet, would be strategic blunder in US policy. A more enlightened US foreign policy would view China as a partner in development not as a competitor, as China as been described by the Trump administration.

(courtesy huffingtonpost.com)

April 4, 2019

State Department Says U.S. Will Not Attend the Belt and Road Forum

According to an unnamed spokesperson for the U.S. State Department yesterday, the United States will not send high-level officials to attend China’s second Belt and Road Forum for International Cooperation in Beijing later this month, Reuters reported. In 2017, when the first Belt and Road Forum took place, the U.S. was represented by Matt Pottinger, the senior White House official for Asia. There are no such plans this year, Reuters stated.

Answering a question from Reuters, the unnamed State Department spokesperson said: “We will not send high-level officials from the United States…. We will continue to raise concerns about opaque financing practices, poor governance and disregard for internationally accepted norms and standards, which undermine many of the standards and principles that we rely upon to promote sustainable, inclusive development and to maintain stability and a rules-based order. We have repeatedly called on China to address these concerns.”

On March 29, speaking to the ruling Communist Party’s official mouthpiece, {People’s Daily}, Political Bureau member Yang Jiechi, who runs the party’s foreign affairs committee, said he found that critics of the Belt and Road Initiative “obviously show a lack of objectivity and fair understanding of the Belt and Road initiative. It is a misunderstanding, misjudgment and is even prejudiced,” stated Yang. Yang also confirmed that “about 40” foreign leaders would take part in the second summit.

China’s BRI Expanding Trade in Africa With Infrastructure Where the West Has Failed: Djibouti

March 28, 2019

Djibouti Port Director: The BRI Has Vastly Expanded All African Trade and Development

Aboubaker Omar Hadi, chairman of Djibouti Ports and Free Zone Authority, told Xinhua on the sidelines of the Africa CEO Forum that “projects involving cooperation with China (such as the Ethiopia-Djibouti railway and the Doraleh Multi-Purpose Port and international free trade zone) are helping Djibouti promote trade in Africa as well as distribution across the East African region.” Hadi said that more than $40 billion in exports and imports has been recorded through Djibouti ports, “which couldn’t be achieved without developing proper infrastructure, such as sea ports and railway connections.” He went on: “I am expecting more movements of goods, infrastructure develop-ment from the second Belt and Road Forum for International Cooperation slated for April in Beijing, as well as stronger interconnection between Africa and the rest of the world,” speaking with Xinhua News.

Hadi also said that the accusations against China made by Western countries about letting some African countries fall into a debt trap due to cooperation on the BRI, are “complete nonsense, as benefits generated from infrastructure construction will far exceed the investment.”

China Prevails Where Europe Has Failed Miserably

“The New Silk Road is the biggest economic venture in mankind’s history,” former chief economist of Bremen Landesbank Folker Hellmeyer told Sputnik, saying it would be quite absurd if Europe did not take a part in it.  “The West could have built infrastructure in these countries in the past 50 years. We have not done this. China is now filling this gap–and we are criticizing that. That is also power play to a certain extent. That is also why it meets resistance. But we are developing human capital and a sustainable growth potential which is enormous. We could have done it, but we haven’t done it. And that is why we should not accuse others.”

Hellmeyer also said that “what I hear here in Europe in terms of criticism, I rather see as a kind of front line politics serving the interests of the U.S.A.”

Newly Elected President of D.R. Congo Addresses Issue of Lake Chad Water Transfer

Newly elected President of the Democratic Republic of Congo (DRC) Félix Tshisekedi addressed the issue of water transfer to save Lake Chad at the just- concluded Africa CEO Forum in Kigali, Rwanda. Speaking at the concluding panel together with host, Rwanda President Paul Kagame, Tshisekedi said that someone is proposing to pump water from the Congo River to save Lake Chad, but there are better options than that.

“On the water issue, which is a battle expecting us in the future, we can think about solutions at the mouth [of the Congo River], before the meeting with the ocean waters. There is a way to catch that water from the river and send it through pipes to countries that need it, rather than doing what has been proposed at some point in Chad — i.e. diverting the course of the Ubangi River. This can have consequences, including on energy, because of the peat bog system that helps the CO2-absorbing natural lungs. We believe that there are other solutions and the D.R.C. is ready to offer them to its partners to build this integration which is so important for us.”
https://www.youtube.com/watch?v=1pKAsR0qhtQ

President Tshisekedi is right when he rejects foolish ideas such as pumping water from the Congo River or diverting the course of the Ubangi. However, he should know that “other solutions,” namely the Transaqua project, have already been approved by the countries of the Lake Chad Basin Commission (LCBC) at the February 2018 International Conference on Lake Chad in Abuja, Nigeria, which was attended by a representative of the D.R.C.. He also should drop the narrative of the peat bog system, created by the British to block the development of the Congo basin.

LCBC observers see the glass as half-full and emphasize the good news of the D.R.C. government addressing publicly the issue and expressing its readiness to help. Notably, this was the first time that a President of D.R. Congo and of Rwanda have appeared together in public. Rwanda President Kagame stressed this in his speech, explaining that Africa will move forward only if personal animosities are put aside. Kagame has recently strongly supported China’s Belt and Road Initiative and blasted the West for having failed in its Africa policies

 

Nations Must Study Alexander Hamilton’s Principles of Political Economy

Hamilton Versus Wall Street: The Core Principles of the American System of Economics
Nancy Bradeen Spannaus iUniverse, Bloomington, Indiana, 2019, 222 pp. $13.99 soft cover, $5.99 e-book.

Hamilton Versus Wall Street: The Core Principles Of the American System of Economics      By Nancy Bradeen Spannaus

A Review by Lawrence Freeman-March 28 2019

For those followers of our beloved Alexander Hamilton and for those new to his writings, this book is for you. Nancy Spannaus, in her just-released book Hamilton Versus Wall Street, makes a unique contribution to the existing volumes written on Hamilton’s political and economic thoughts.  In her relatively short easy-to-read book, she weaves together Hamilton’s revolutionary ideas on political economy that served as the pillars for the creation of the United States, their legacy in the next two centuries of America, and their influence internationally. Throughout her treatise, Spannaus also provides constructive historical analysis of the battle inside the United States to adopt Hamilton’s concepts. This book is a valuable complement to Hamilton’s economic reports and will aid those unfamiliar with his seminal texts. *

Spannaus polemically begins by countering the popular myth that Hamilton was an agent for the banks (Wall Street) against the interests of the “little man,” agrarian society and the states, as espoused by Thomas Jefferson and others.  She later devotes entire chapters to Hamilton’s opposition to the British central banking system and Adam Smith, exposing another slander which alleged Hamilton was a supporter of the British aristocracy.

Principles of Political Economy

            Unlike like other publications on Hamilton that gloss over or give insufficient attention to Hamilton’s ground-breaking concepts of banking, credit, and manufactures, Spannaus makes a great effort to elaborate Hamilton’s contributions to: “The Core Principles of the American System of Economics.”  **

All nations would benefit greatly, if their leaders and citizens studied Hamilton writings. American culture would not be at the low level it is today, if my fellow citizens had been taught Hamilton’s economic theories, which in fact were crucial to the creation of our nation from thirteen indebted, agriculturally-based colonies. Advanced sector countries that are dominated by financial systems dictated by Wall Street and the City of London, and underdeveloped nations that rely on resource extraction and farming, because they lack a manufacturing sector, could learn a great deal from Hamilton.

However, Hamilton’s thinking about economic growth was not limited to the mere production of goods. He understood for society to continually increase the productive powers of the economy, the development of the human mind was essential. Spannaus quotes Hamilton: “To cherish and stimulate the activity of the human mind, by multiplying objects of enterprise, is not among the least considerable of the expedients, by which the wealth of the nations may be promoted.” (p. 28).

Friederich List, a student of Hamilton’s philosophy in the nineteenth century, wrote that “capital of mind, capital of nature, and capital of productive matter” are all essential components to achieve economic progress. (p. 29)

Hamilton’s First National Bank (courtesy ushistory.org)

The Constitution and Public Debt-Credit

Hamilton knew that for a nation to be truly sovereign, it must possess the means to produce the physical wealth necessary to maintain the existence of its citizens and their posterity. It is no coincidence that the Founding Fathers embedded this concept in the profound Preamble to the US Constitution. As Spannaus emphasizes, for Hamilton, the importance of establishing federal credit through the creation of the National Bank, stabilizing the currency, developing the manufacturing capability of the young United Sates, and increasing the wealth of the nation through internal improvements, was coherent with the intent of the Preamble “to form a more perfect Union.”

Hamilton used the “general welfare” clause of the Preamble to justify his revolutionary idea to create a public-private National Bank to consolidate the separate states and establish a unified currency to promote national economic growth. Generations later, in the footsteps of Hamilton, Franklin Roosevelt, who studied Hamilton’s writings, would also rely on the “general welfare” clause to garner support for his New Deal and other programs he initiated to revive the U.S. economy wracked by the Great Depression.  

Public Credit, anathema today to virtually all Democratic and Republican leaders, was another key concept Hamilton fought for, knowing that private sector funds and privately-owned banks would never adequately fund a nation’s economic growth, especially for large-scale internal improvements, i.e. infrastructure.

To emphasize the unique role of public credit, Spannaus lists four exceptional periods in U.S. history when the efficacious application of government-issued credit led to a pronounced expansion of the American economy. These are administrations of Presidents George Washington, John Quincy Adams, Abraham Lincoln, and Franklin Roosevelt. (p. 55-56)

In chapter 7, the author concisely summarizes Hamilton’s outlook: “…it is the deliberate increasing of the productive powers of labor through technology, improvements in infrastructure, and the use of government power to create credit that will produce value in the economy.” (p.128) This is more than good advice that all public officials. government leaders, and informed citizens should follow to secure a joyful future for their nation.

In Africa and other underdeveloped regions of the world where nations have suffered from hundreds of years of exploitation of their natural resources, Alexander Hamilton’s wise words should be fully grasped: “The intrinsic wealth of a nation is be measured, not by the abundance of the precious metals contained in it, but by the quantity of the productions of its labor and industry.” (emphasis added p. 1)

*Hamilton wrote four major economic reports for Congress and President George Washington between January 1790 and December 1791: Report on Public Credit; Report on a National Bank; Report on Manufactures; and Opinion as to the Constitutionality of the National Bank.

**This is the subtitle of Hamilton Versus Wall Street.